Commercial obligations of corporations in El Salvador: what you should know

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In El Salvador, corporations have a series of commercial obligations that they must comply with in order to operate in a legal, stable and transparent manner. Knowing them not only helps to maintain the good health of your company, but also avoids penalties that can affect its growth.

The following are the main obligations that every corporation must comply with:

1. Appointment and registration of directors

The directors must be appointed in accordance with the provisions of the Articles of Incorporation and their appointment must be recorded in the Commercial Registry. This step is essential for your actions to be legally valid.

2. Ordinary General Shareholders’ Meeting

According to Article 223 of the Commercial Code, within the first five months of each fiscal year, the company must hold its ordinary general meeting. During this meeting, the following should be discussed:

• Approve the administration’s annual report, which summarizes the activities and results of the previous year.
• Approve the financial statements, including the balance sheet, income statement and statement of changes in equity.
• Appoint the external auditor and the tax auditor for the new fiscal year.

Important: The appointment of the tax auditor must be notified to the Ministry of Finance within 10 working days of appointment. For this 2025, the deadline is June 13.

3. Annual registration renewal

According to Article 420 of the Commercial Code, the commercial registration must be renewed every year, within the month in which the company was originally registered. Timely renewal is key to maintaining the company’s operability.

4. Deposit of financial statements

Once approved by the shareholders’ meeting, the financial statements must be filed with the Commercial Registry. This deposit allows them to be effective against third parties, as required by Article 282 of the Commercial Code.

Why is it important to fulfill these obligations?

Complying with these provisions is not only a legal duty. It is also a way to strengthen the image of transparency and seriousness of your company, generating confidence among partners, customers and authorities.

At Novis Estudio Legal, we understand that compliance with these obligations can be a challenge, so we accompany you every step of the way with specialized legal advice, so that your company is always up to date.

Do you have doubts or need help?
Contact us and secure your company’s future.

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